The U.S. dollar briefly slipped to the mid-111 yen range Tuesday morning in Tokyo, its lowest level in about two months, as traders continued to buy the Japanese currency amid receding expectations of a near-term U.S. interest rate hike.
At noon, the dollar fetched 111.83-84 yen compared with 111.68-78 yen in New York and 112.73-75 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0722-0723 and 119.90-92 yen against $1.0745-0755 and 120.04-14 yen in New York and $1.0751-0753 and 121.20-24 yen in Tokyo late Monday afternoon.
The dollar pared earlier losses toward noon but its gains were capped as expectations of a Federal Reserve interest rate hike in March have waned after a U.S. jobs report showed Friday weaker-than-expected wage growth in January, dealers said.
The yen, perceived as a safe-haven asset, also drew buying amid growing political uncertainties in Europe as Marine Le Pen, the leader of France’s far-right party, launched her presidential election bid vowing to fight globalization and hold a referendum on the country’s European Union membership, the dealers said.
Recent opinion polls suggested Le Pen will win the first round of the two-stage presidential election in spring.
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